H.B. 459 Enrolled

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LONG TITLE
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General Description:
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This bill modifies the Check Cashing and Deferred Deposit Lending Registration Act to
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address reporting requirements and the requirement to register.
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Highlighted Provisions:
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This bill:
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. defines terms;
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. modifies what a deferred deposit lender is required to report as part of its operations
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statement;
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. makes void a deferred deposit loan issued by a person required to be registered but
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who is not registered under the chapter;
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. requires the department to report certain information regarding complaints; and
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. makes technical and conforming amendments.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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7-23-102, as last amended by Laws of Utah 2008, Chapter 96
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7-23-201, as last amended by Laws of Utah 2010, Chapter 102
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7-23-503, as enacted by Laws of Utah 2008, Chapter 96
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
7-23-102
is amended to read:
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7-23-102. Definitions.
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As used in this chapter:
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(1) "Annual percentage rate" has the same meaning as in 15 U.S.C. Sec. 1606, as
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implemented by regulations issued under that section.
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[(1)] (2) "Business of cashing checks" means cashing a check for consideration.
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[(2)] (3) "Business of deferred deposit lending" means extending a deferred deposit
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loan.
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[(3)] (4) "Check" is as defined in Section
70A-3-104
.
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[(4)] (5) "Check casher" means a person that engages in the business of cashing checks.
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[(5)] (6) "Deferred deposit lender" means a person that engages in the business of
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deferred deposit lending.
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[(6)] (7) "Deferred deposit loan" means a transaction where:
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(a) a person:
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(i) presents to a deferred deposit lender a check written on that person's account; or
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(ii) provides written or electronic authorization to a deferred deposit lender to effect a
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debit from that person's account using an electronic payment; and
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(b) the deferred deposit lender:
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(i) provides the person described in Subsection [(6)] (7)(a) an amount of money that is
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equal to the face value of the check or the amount of the debit less any fee or interest charged
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for the transaction; and
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(ii) agrees not to cash the check or process the debit until a specific date.
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[(7)] (8) (a) "Electronic payment" means an electronic method by which a person:
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(i) accepts a payment from another person; or
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(ii) makes a payment to another person.
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(b) "Electronic payment" includes a payment made through:
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(i) an automated clearing house transaction;

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(ii) an electronic check;
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(iii) a stored value card; or
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(iv) an Internet transfer.
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[(8)] (9) "Rollover" means the extension or renewal of the term of a deferred deposit
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loan.
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Section 2.
Section
7-23-201
is amended to read:
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7-23-201. Registration -- Rulemaking.
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(1) (a) It is unlawful for a person to engage in the business of cashing checks or the
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business of deferred deposit lending in Utah or with a Utah resident unless the person:
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(i) registers with the department in accordance with this chapter; and
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(ii) maintains a valid registration.
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(b) It is unlawful for a person to operate a mobile facility in this state to engage in the
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business of:
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(i) cashing checks; or
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(ii) deferred deposit lending.
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(2) (a) A registration and a renewal of a registration expires on April 30 of each year
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unless on or before that date the person renews the registration.
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(b) To register under this section, a person shall:
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(i) pay an original registration fee established under Subsection
7-1-401
(8); and
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(ii) submit a registration statement containing the information described in Subsection
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(2)(d).
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(c) To renew a registration under this section, a person shall:
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(i) pay the annual fee established under Subsection
7-1-401
(5);
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(ii) submit a renewal statement containing the information described in Subsection
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(2)(d); and
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(iii) if the person engages in the business of deferred deposit lending, submit an
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operations statement containing the information described in Subsection (2)(e).
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(d) A registration or renewal statement shall state:

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(i) the name of the person;
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(ii) the name in which the business will be transacted if different from that required in
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Subsection (2)(d)(i);
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(iii) the address of the person's principal business office, which may be outside this
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state;
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(iv) the addresses of all offices in this state at which the person conducts the business
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of:
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(A) cashing checks; or
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(B) deferred deposit lending;
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(v) if the person conducts the business of cashing checks or the business of deferred
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deposit lending in this state but does not maintain an office in this state, a brief description of
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the manner in which the business is conducted;
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(vi) the name and address in this state of a designated agent upon whom service of
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process may be made;
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(vii) disclosure of any injunction, judgment, administrative order, or conviction of any
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crime involving moral turpitude with respect to that person or any officer, director, manager,
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operator, or principal of that person; and
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(viii) any other information required by the rules of the department.
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(e) An operations statement required for a deferred deposit lender to renew a
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registration shall state for the immediately preceding calendar year:
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(i) the average principal amount of the deferred deposit [loan amount that the deferred
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deposit lender extended] loans extended by the deferred deposit lender;
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(ii) for deferred deposit loans paid in full, the average number of days a deferred
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deposit loan is [extended by the deferred deposit lender before the deferred deposit loan is paid
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in full] outstanding for the duration of time that interest is charged;
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[(iii) of the deferred deposit loans that are paid in full 10 weeks or sooner after the day
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on which the deferred deposit loan is executed, the average number of days a deferred deposit
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loan is extended by the deferred deposit lender before the deferred deposit loan is paid in full;]

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[(iv)] (iii) the minimum and maximum dollar amount of interest [or] and fees charged
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by the deferred deposit lender for a deferred deposit loan[:] of $100 with a loan term of seven
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days;
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[(A) of $100; and]
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[(B) extended for one week;]
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[(v)] (iv) the total number of deferred deposit loans rescinded by the deferred deposit
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lender at the request of the customer pursuant to Subsection
7-23-401
(3)(b);
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[(vi) the percentage of deferred deposit loans extended by the deferred deposit lender
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that are not paid in full by 10 weeks after the day on which the deferred deposit loan is
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executed; and]
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[(vii)] (v) of the persons to whom the deferred deposit lender extended a deferred
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deposit loan, the percentage that entered into an extended payment plan under Section
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7-23-403
[.];
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(vi) the total dollar amount of deferred deposit loans rescinded by the deferred deposit
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lender at the request of the customer pursuant to Subsection
7-23-401
(3)(b);
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(vii) the average annual percentage rate charged on deferred deposit loans; and
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(viii) the average dollar amount of extended payment plans entered into under Section
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7-23-403
by the deferred deposit lender.
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(3) Information provided by a deferred deposit lender under Subsection (2)(e) is:
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(a) confidential in accordance with Section
7-1-802
; and
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(b) not subject to Title 63G, Chapter 2, Government Records Access and Management
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Act.
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(4) (a) The commissioner may impose an administrative fine determined under
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Subsection (4)(b) on a person if:
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(i) the person is required to be registered under this chapter;
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(ii) the person fails to register or renew a registration in accordance with this chapter;
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(iii) the department notifies the person that the person is in violation of this chapter for
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failure to be registered; and

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(iv) the person fails to register within 30 days after the day on which the person
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receives the notice described in Subsection (4)(a)(iii).
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(b) Subject to Subsection (4)(c), the administrative fine imposed under this section is:
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(i) $500 if the person:
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(A) has no office in this state at which the person conducts the business of:
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(I) cashing checks; or
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(II) deferred deposit lending; or
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(B) has one office in this state at which the person conducts the business of:
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(I) cashing checks; or
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(II) deferred deposit lending; or
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(ii) if the person has two or more offices in this state at which the person conducts the
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business of cashing checks or the business of deferred deposit lending, $500 for each office at
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which the person conducts the business of:
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(A) cashing checks; or
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(B) deferred deposit lending.
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(c) The commissioner may reduce or waive a fine imposed under this Subsection (4) if
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the person shows good cause.
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(5) If the information in a registration, renewal, or operations statement required under
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Subsection (2) becomes inaccurate after filing, a person is not required to notify the department
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until:
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(a) that person is required to renew the registration; or
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(b) the department specifically requests earlier notification.
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(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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department may make rules consistent with this section providing for:
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(a) the form, content, and filing of a registration and renewal statement described in
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Subsection (2)(d); and
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(b) the form and filing of an operations statement described in Subsection (2)(e).
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(7) A deferred deposit loan that is made by a person who is required to be registered

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under this chapter but who is not registered is void, and the person may not collect, receive, or
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retain any principal or other interest or fees in connection with the deferred deposit loan.
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Section 3.
Section
7-23-503
is amended to read:
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7-23-503. Reporting by commissioner.
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(1) Subject to Subsection (2), as part of the commissioner's annual report to the
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governor and Legislature under Section
7-1-211
, the commissioner shall report to the governor
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and Legislature on the operations on an aggregate basis of deferred deposit lenders operating in
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the state.
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(2) In preparing the report required by Subsection (1), the commissioner:
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(a) shall include in the report for the immediately preceding calendar year aggregate
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information from the one or more operations statements filed under Subsection
7-23-201
(2)(e)
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by deferred deposit lenders for that calendar year; [and]
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(b) shall include in the report:
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(i) the total number of written complaints concerning issues material to deferred
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deposit loan transactions received by the department in a calendar year from persons who have
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entered into a deferred deposit loan with a deferred deposit lender;
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(ii) for deferred deposit lenders who are registered with the department:
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(A) the number of the complaints described in Subsection (2)(b)(i) that the department
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considers resolved; and
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(B) the number of the complaints described in Subsection (2)(b)(i) that the department
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considers unresolved; and
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(iii) for deferred deposit lenders who are not registered with the department:
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(A) the number of the complaints described in Subsection (2)(b)(i) that the department
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considers resolved; and
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(B) the number of the complaints described in Subsection (2)(b)(i) that the department
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considers unresolved; and
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[(b)] (c) may not include in the report information from an operations statement filed
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with the department that could identify a specific deferred deposit lender.